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274                       Records of Bahrain


                              CONFIDENTIAL.                         POLITICAL AGENCY
                                                                         BAHRAIN.
                              D.O. NO. C/1191.                  The 14th of Docember, 1947.









                                      Plea3e refer to the correspondence ending with
                               your demi-official letter No. 2022-S, dated the 26th
                               November, 1947, on the subject of the Bahrain Civil List.
                               2.     I have had several conversations with Belgrave on
                               the subject, and he is quite as disturbed as we are by
                               the Shaikh's action and, indeed, before I had read the
                               papers, ho ask eg me what we were going to do about it.
                               He said, and I believe him, that this would never have
                               happened if ho had been here. He explained that what has
                               actually happened is that the Shaikh has increased the
                               Civil List from Rs.4,20,000 to Rs.6,30,000. in round
                               figures this two lakhs' increase which the State budget
                               has to boar is made up of
                                           (a)  1 lakh which the Shaikh formerly paid
                                              himself from his share of the oil royalty
                                           (b)  1 lakh increases in the cost of living
                                                         allowance.
                               Belgrave agreed with me that whatever excuse there might.be
                                for adding (b) to the State budget, there is none whatsoever
                                for similar action in respect of (a),   It seems to me
                                largely academic to argue as to whether there was a "principle"
                                that increases in the cost of living allowances of the A1
                                Khalifah should be met from the Ruler's 1/3 share of the
                                royalties. But it is clear from past correspondence that
                                we were consulted, expected to be consulted, gave advice, and
                                that the advice was taken in questions concerning Bahrain
                                Government finances, andjespecially in those concerning the
                                allowances of the Ruler and his family; The Shuikh has now
                                flouted our authority as exercised in the past in this way; .
                                it seems to me in keeping with this attitude as described in
                                my demi-official letter No.C/619, dated th.o 24th of May, 1947,
                                though whether one regards,£hls as "deterioration" in the
                                local position is, I suppose, largely a matter of a point of
                                view.                   ^
                                                          ■“fa V          /3. I am


                         The Hon'ble Lfc-Col. Sir Rupert Hay,                                 I
                                                                         ..............2.U £<?. ............
                                              K.C.I.E., C.S.I.  J
                               Political Resident in the Persian Gulf Stei.,,
                                                       Bahrain.           /.........Uh.-.MD ...
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